trivago N.V. · NASDAQ:TRVG
trivago — Q3 2017 Earnings Presentation
27 slides from trivago's earnings presentation, Oct 25, 2017
Slide 1: Earnings Call Q3 2017
Earnings Call Q3 2017 25 October 2017
Slide 2: Disclaimer
Disclaimer All of the information herein has been prepared by the Company solely for use in this presentation. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be
Slide 3: Agenda
Agenda Company overview Financial performance Guidance 2017 Appendix: Financial statements 3
Slide 4: Agenda: Company overview
Agenda Company overview Financial performance Guidance 2017 Appendix: Financial statements 4
Slide 5: The marketplace has rebalanced
The marketplace has rebalanced Advertiser1 revenue share • We believe our financial performance in Q3 2017 was negatively impacted by our largest advertisers having changed their profitability targets on our marketplace • As a result, we expect to see less revenue concentrated in our largest adverti
Slide 6: Q3 2017 – Continuation of topline growth
Q3 2017 – Continuation of topline growth Total Revenue (€mm) Adj. EBITDA1 (€mm) Referral Revenue by segment +46% +17% 2 2 Source: unaudited US GAAP financials 6 1. Adj. EBITDA is only adjusted for share-based compensation. A reconciliation to reported results is included in the Appendix 2. Nine mont
Slide 7: Agenda: Financial performance
Agenda Company overview Financial performance Guidance 2017 Appendix: Financial statements 7
Slide 8: Continued topline growth YoY
Continued topline growth YoY Total Revenue (€mm) Adj. EBITDA1 (€mm) Net Income (€mm) +46% +17% 2 2 2 Source: unaudited US GAAP financials 8 1. Adj. EBITDA is only adjusted for share-based compensation. A reconciliation to reported results is included in the Appendix 2. Nine months ended September 30
Slide 9: Profitability decreased slightly YoY
Profitability decreased slightly YoY Referral Revenue (% of Advertising Expense) Adjusted EBITDA1 (% of Total Revenue) 2 2 Source: unaudited US GAAP financials 9 1. Adj. EBITDA is only adjusted for share-based compensation. A reconciliation to reported results is included in the Appendix 2. Nine mon
Slide 10: Impact of recent trends on our key performance indicators
Impact of recent trends on our key performance indicators RPQR3 ROAS Qualified Referrals Commercialization1 Impact on booking conversion Product optimization Attribution model2 1 Downward adjustment of cost-per-click bids by our advertisers on our marketplace. Includes impact of advertiser response
Slide 11: Qualified Referrals KPI – Global
KPI – Global Highlights Referrals Qualified • QR growth slowed down due to a deceleration of our (mm) advertising spend, which reflected lower elasticity of our spend YoY YoY in some markets and lower commercialization. In addition, QR +20% +42% growth was negatively impacted by the roll out of the
Slide 12: Qualified Referrals KPI – Americas
KPI – Americas Highlights Referrals Qualified • QR growth slowed down due to a deceleration of our (mm) advertising spend, which reflected lower elasticity of our spend YoY YoY in some markets and lower commercialization. In addition, QR +19% +44% growth was negatively impacted by the roll out of th
Slide 13: Qualified Referrals KPI – Developed Europe
KPI – Developed Europe Highlights Referrals Qualified • QR growth slowed down due to a deceleration of our (mm) advertising spend, which reflected lower elasticity of our spend YoY YoY in some markets and lower commercialization. In addition, QR +1% +20% growth was negatively impacted by the roll ou
Slide 14: Qualified Referrals KPI – Rest of World
KPI – Rest of World Highlights Referrals Qualified • QR growth slowed down compared to a strong Q3 2016. The (mm) decline in growth rate also reflected the roll out of the new YoY YoY attribution model in certain performance marketing channels +56% +87% and a lower commercialization 2 RPQR (€) • RPQ
Slide 15: Agenda: Guidance 2017
Agenda Company overview Financial performance Guidance 2017 Appendix: Financial statements 15
Slide 16: Guidance for 2017
Guidance for 2017 Total Revenue expected to Adjusted EBITDA1 grow at a rate between 36% and 39% expected to remain positive 1. Adjusted EBITDA is only adjusted for share-based compensation 16
Slide 17: Q&A
trivago Q&A
Slide 18: Agenda: Appendix: Financial statements
Agenda Company overview Financial performance Guidance 2017 Appendix: Financial statements 18
Slide 19: Consolidated Financials YTD 2017, trivago N.V.
Consolidated Financials YTD1 2017, trivago N.V. (in €k) YTD 2017 YTD 2016 Abs Δ vs. YTD'16 Δ vs. YTD'16 Referral revenue 843,087 579,324 263,763 45.5% Comments Other revenue 10,753 5,679 5,074 89.3% Total revenue 853,840 585,002 268,838 46.0% Cost of revenue (4,355) (3,118) (1,237) 39.7% • Overview
Slide 20: Consolidated Financial Information YTD 2017, trivago N.V.
Consolidated Financial Information YTD1 2017, trivago N.V. (in €k) Referral revenue YTD 2017 843,087 YTD 2016 579,324 Abs Δ vs. YTD'16 263,763 Δ vs. YTD'16 45.5% Comments Other revenue 10,753 5,679 5,074 89.3% 1 Total revenue 853,840 585,002 268,838 46.0% Cost of revenue excl. SBC (4,270) (2,394) (1
Slide 21: Reconciliation of non-GAAP Financial Measures YTD 2017
1 Reconciliation of non-GAAP Financial Measures YTD 2017, trivago N.V. (in €m) YTD 2017 YTD 2016 Abs Δ vs. YTD'16 Δ vs. YTD'16 Net income (loss) (3.5) (51.5) 48.0 93.2% Provision (benefit) for income taxes (1.3) 1.6 (2.9) (181.3%) Income (loss) before income tax (4.7) (49.9) 45.2 90.6% Add/(Deduct):
Slide 22: Consolidated Financials Q3 2017, trivago N.V.
Consolidated Financials Q3 2017, trivago N.V. (in €k) Q3 2017 Q3 2016 Abs Δ vs. Q3'16 Δ vs. Q3'16 Referral revenue 283,760 244,240 39,520 16.2% Comments Other revenue 4,100 2,422 1,678 69.3% Total revenue 287,860 246,662 41,198 16.7% Cost of revenue (1,846) (1,021) (825) 80.8% • Overview of P&L unde
Slide 23: Consolidated Financial Information Q3 2017, trivago N.V.
Consolidated Financial Information Q3 2017, trivago N.V. (in €k) Referral revenue Q3 2017 283,760 Q3 2016 244,240 Abs Δ vs. Q3'16 39,520 Δ vs. Q3'16 16.2% Comments Other revenue 4,100 2,422 1,678 69.3% 1 Total revenue 287,860 246,662 41,198 16.7% Cost of revenue excl. SBC (1,813) (1,008) (805) 79.9%
Slide 24: Reconciliation of non-GAAP Financial Measures Q3 2017
Reconciliation of non-GAAP Financial Measures Q3 2017, trivago N.V. (in €m) Q3 2017 Q3 2016 Abs Δ vs. Q3'16 Δ vs. Q3'16 Net income (loss) (7.7) (1.5) (6.2) n.m Provision (benefit) for income taxes (6.3) 1.2 (7.5) n.m Income (loss) before income tax (14.0) (0.3) (13.7) n.m Add/(Deduct): Net interest
Slide 25: Consolidated Statement of Cash Flows YTD 2017
Consolidated Statement of Cash Flows YTD1 2017, trivago N.V. (in €k) YTD 2017 YTD 2016 Net lncome (loss) (3,453) (51,498) Comments Adjustments to reconcile net income to net cash used: Depreciation 4,999 3,331 1) The amortization costs relate predominantly to intangible assets Amortization of intang
Slide 26: Consolidated Statement of Cash Flows Q3 2017
Consolidated Statement of Cash Flows Q3 2017, trivago N.V. (in €k) Q3 2017 Q3 2016 Net lncome (loss) (7,726) (1,522) Comments Adjustments to reconcile net income to net cash used: Depreciation 1,869 1,262 1) The amortization costs relate predominantly to intangible assets Amortization of intangible
Slide 27: Consolidated Balance Sheet YTD 2017
Consolidated Balance Sheet YTD 2017, trivago N.V. (in €k) Sep 30, 2017 Dec 31, 2016 Cash and cash equivalent 188,291 227,298 1 Comments Restricted cash 2,699 884 Accounts receivable 49,565 36,658 1) Change in cash balances resulted primarily from seasonal Accounts receivable, related party 60,389 16